Tata Steel Reports Q4 Profit Surge, Exceeding Rs 1,200 Crore

Tata Steel has announced a remarkable turnaround in its financial performance, reporting a consolidated net profit of Rs 1,200.88 crore for the March quarter, a significant increase from Rs 554.56 crore in the same period last year. This surge in profit was attributed to higher production volumes and a reduction in controllable costs, despite facing lower realizations. However, the company’s total income for the quarter saw a decline, dropping to Rs 56,679.11 crore from Rs 58,863.22 crore year-on-year.

Financial Highlights and Yearly Performance

For the full financial year FY25, Tata Steel recorded a net profit of Rs 3,173.78 crore, a stark contrast to the loss of Rs 4,909.61 crore reported in the previous fiscal year. The Board of Directors has recommended a dividend of Rs 3.60 per equity share for FY25, reflecting the company’s improved financial health. Additionally, the board has approved a proposal to invest up to USD 2.5 billion (approximately Rs 21,410.95 crore) in its wholly-owned foreign subsidiary, T Steel Holdings Pte Ltd, through equity subscription in multiple tranches during the current fiscal year.

Operational Performance in Q4

In the fourth quarter, Tata Steel’s operations in India generated revenues of Rs 34,661 crore, with an EBITDA of Rs 7,418 crore, resulting in an EBITDA margin of 21%. The company produced 5.44 million tonnes of crude steel, which was lower compared to the previous quarter due to a blast furnace reline at its Jamshedpur facility. However, deliveries increased by 6% quarter-on-quarter, reaching 5.60 million tonnes. In the UK, the company reported revenues of 551 million pounds but faced an EBITDA loss of 80 million pounds, although deliveries rose by 12% quarter-on-quarter to 0.63 million tonnes.

Capital Expenditure and Debt Management

During the quarter, Tata Steel invested Rs 3,220 crore in capital expenditures, totaling Rs 15,671 crore for the entire financial year. The company’s net debt stood at Rs 82,579 crore, while its group liquidity remained robust at Rs 38,791 crore, which includes Rs 12,222 crore in cash and cash equivalents. Koushik Chatterjee, Executive Director and Chief Financial Officer, noted that Tata Steel’s consolidated revenues for FY2025 were around USD 26 billion, with an EBITDA of USD 3.1 billion, reflecting a 10% year-on-year improvement.

Strategic Developments and Future Outlook

CEO and Managing Director TV Narendran highlighted that FY25 marked a significant transition year for Tata Steel, with key developments across its operational geographies. The company successfully commissioned India’s largest blast furnace at Kalinganagar and decommissioned two blast furnaces in the UK. Additionally, Tata Steel achieved near-rated capacity production levels in the Netherlands. Deliveries in India reached an all-time high of approximately 21 million tonnes, up 5% year-on-year, supported by the ramp-up of the new blast furnace at Kalinganagar. Narendran also emphasized the company’s commitment to research and development, having invested over Rs 1,600 crore in the past five years to enhance its capabilities in hydrogen transportation and automotive-grade steel production.

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